Taking Positives From 2018
Falling markets can be useful in many ways. They can provide attractive entry prices for long-term investors. And they can reveal who has been swimming naked.
Falling markets can be useful in many ways. They can provide attractive entry prices for long-term investors. And they can reveal who has been swimming naked.
We seem to be having more of a Santa Rout than a Santa Rally, so it’s a brave investor that’s looking to put money in small-cap funds right now. But I think it’s a great time to size up what’s on offer.
When you’re messing around with statistics, it’s all too easy to come up with something that’s horrendously misleading. Investing stats are no different. Here are three that really set my teeth on edge.
Picking good investments is important but perhaps represents just 20% of the puzzle. Learning how to hold onto the darn things, regardless of what the market throws at you, is arguably the other 80%.
I’ve always had a soft spot for investing in smaller companies, aka small caps. It’s what many private investors cut their teeth on. What’s more, there’s decent evidence that such companies outperform the wider market. This phenomenon has even got a catchy moniker: the small-cap effect.
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